What American Businesses Can Expect To Gain From Alibaba's Gateway 17 Summit In Detroit

Alibaba Group Founder and Executive Chairman Jack Ma speaks at the World Economic Forum in Davos. (FABRICE COFFRINI/AFP/Getty Images)

China is a challenge for many U.S. businesses. They want the opportunity to sell into this massive and fast-growing market, but they lack China experience, and let’s face it, China isn't always an easy market in which to work. E-commerce solves much of this difficulty by greatly reducing costs and simplifying strategy, but many U.S. brands are still wary. They need technical support. They need advice. They need trusted partners. They need to think through a first step that minimizes costs and risks.

Well, help is at hand, offered by Alibaba. On June 20-21, the e-commerce giant will host the “Gateway 17” conference in Detroit to introduce U.S. businesses and entrepreneurs to growth opportunities and solutions allowing them to market to millions of Chinese consumers. Your prayers have been answered. Book your flight.

Gateway ’17 will feature keynote speeches from Alibaba founder Jack Ma and other leading entrepreneurs, as well as smaller group sessions to help U.S. companies--from farmers to SMEs to established brands to retailers--learn about selling directly to China online. There will also be matchmaking sessions to help businesses learn about which Alibaba marketplaces will be most useful to them.

Full disclosure: Alibaba has asked me to participate at this event as an expert in China cross-border e-commerce. And I have a confession to make: I genuinely like Alibaba and I like Jack Ma. This does not mean that there are not challenges in China e-commerce and Tmall can be vexing at times. This initiative does not mean that Alibaba is perfect, but it does mean that Alibaba has the right idea. The world is moving to digital connectivity and any company that facilitates that process is going to do well, deservedly so. Having established the leading e-commerce platform in the world, Jack Ma is keen to get as many U.S. companies on the platform as possible.

Gateway ‘17 is the next step in that journey. Certainly the market opportunity is compelling. Consider:

Last year, Chinese consumers spent nearly $5 trillion, surpassing the U.S. as the world’s largest retail market.

By next year, China’s online spending will be greater than the rest of the world’s online spending combined. That’s right, over 50% of the world’s e-commerce activity will take place in China.

What is really going on in Detroit?

As is often the case in U.S.-China relations, there are a few issues going on beneath the surface. I see four elements driving the Detroit event.

First, as billed, Gateway '17 is partly informational, to share practical “how to” information with the target audience, to provide counselling and problem-solving opportunities, and to allow for conversations than can better take place in person rather than over the phone. But there are a few other things going on.

Second, it is partly a promotional opportunity to remind the U.S. audience of the strength and growth rate of China e-commerce. No better way to communicate with a national audience than through media coverage of an event.

Third, it is partly a signal within Alibaba, that leadership cannot simply aim for the biggest brands, but needs to develop a mechanism to reach mid-tier and smaller companies--not always a strong suit.

And fourth, it is also a reminder to political leadership in DC and Beijing that regardless of issues in the bilateral trade relationship, the consumer segment is relatively trouble-free and represents a win-win for both societies.

So if your company ever wanted to think about a possible China strategy, it is worth sending one or two people to participate at this Detroit event.

The question is not so much what does Alibaba hope to accomplish in Detroit. The real question is what does your company hope to accomplish there.

Correction: An earlier version of this article misstated the date when the “Gateway 17” conference would take place.

Frank Lavin is the CEO of Export Now, the leading operator of China e-commerce stores for international brands. He previously worked on China issues in government, finance, and communications.

Whether in banking, communications, trade negotiations, or e-commerce, my professional life is helping companies enter and succeed in new markets, with a particular focus on China. As Founder and CEO of Export Now, I run the largest international firm in China e-commerce. Ex...